Competitive environments warrant otels to diversity products and services. Diversification is necessary to reduce the risks associated with revenues and profitability. This study explored whether food and beverage (F&B) activities have the potential to create a diversification of revenue sources for hotel businesses. Using STR hotel performance data from 2007 to 2016, the study conducted panel regression analyses and time trend analyses in the pre- and post-2008 recession period to investigate the impact of diversifying revenue and profit sources through F&B activities. Results indicate that F&B activities can be a source of diversification for upper upscale hotels. Results further suggest that F&B was a supplementary income source at the beginning of the recovery phase of the last recession. Theoretical contributions and managerial implications are discussed.